International
US-China resolve dispute relating to payment of two per cent rise in taxation
NEW DELHI: The dispute between the American film studios and China Film Group Corporation has been resolved with the Chinese side agreeing to pay the money due in full.
According to Motion Picture Association of America (MPAA) Christopher J Dodd, a controversial two per cent rise in taxation on luxury goods that came into nationwide effect on 1 August was the cause of the dispute.
Previously there was a 3.3 per cent tax on ticket sales, in addition to the controversial five per cent paid to the opaque government film fund. The internal dispute between CFG which is China distribution partner for American studios and the US studios has been over who will pay the newly introduced two per cent that the film industry has suddenly been burdened with.
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According to the trade agreement signed between the (then) vice president’s Xi Jinping and Joe Biden in February 2012 — US studios was guaranteed 25 per cent of revenue on imported films after all taxes had been paid by China Film Group.
According to Film Business Asia, unverified reports state that the state-owned CFG receives about 14.5 per cent of revenue on imported films, compared to the 25 per cent that goes to the US studios on non-flat fee deals. Cinema owners take a fixed 57 per cent of box office revenue. But the 25 per cent deal was made at the highest level of government and was never at risk.
It has not yet been determined how the two per cent will be accounted for outside of the US studios 25 per cent. There could be a reduction in the film fund to three per cent. Any decision may need to be approved at the next meeting of the State Council. What has been made clear is that under the agreement signed by Xi and Biden — the US studios‘ post-taxation 25 per cent take will still be honoured.
International
Moskino and Bollywood: Moscow Film Cluster and Film City Mumbai signed a cooperation agreement
Moscow Film Cluster has signed a cooperation agreement with Film City Mumbai. The parties agreed to cooperate in developing the film industry, promoting shooting locations and supporting filmmakers.
The memorandum was signed on the sidelines of the India International Film Tourism (IIFTC) Conclave in Mumbai. At this forum, the Moscow Film Cluster presented Moscow’s opportunities for film shooting, including infrastructure projects such as Film City Moskino and Film Factory. Special attention was paid to the Moscow rebate system – up to 45% – and the co-production development.
Memorandum of Understanding between the Film City and Moscow Film Cluster provides for the establishment and development of mutually beneficial cooperation in the film industry development, including joint promotion of shooting locations, support for filmmakers, implementation of marketing and industry events, development of incentive support measures and strengthening of economic and cultural interaction between India and Moscow.
The parties also intend to promote the development of the audiovisual sector through the exchange of experience, joint initiatives and the search for opportunities to create new industry partnerships and clusters.
Moscow Film Cluster is a major city initiative led by Moscow Mayor Sergei Sobyanin to develop the capital into a global cinema hub. It brings together key production infrastructure – such as the Moskino Film Сity, Film Factory and Gorky Film Studio – along with the Film Commission, digital platform and cinema chain to streamline shooting, support productions and attract international filmmaking to Moscow.
Also, Moscow offers a rebate of up to 45%: 30% as direct production cost compensation, up to 15% for visa and accommodation support. The Moscow Image Grant provides up to $255,000 for films showcasing iconic city views.
The Moscow Film Cluster booth attracted considerable attention from Indian producers and studios. Over 80 business meetings were held, including those with major Indian companies.
One of the booth guests was the famous Indian actress Khushboo Sundar, known to Soviet and Russian audiences for her role in My Soul and considered the leading star of Tamil cinema, in whose honor one of the local temples was even built. Prithul Kumar, representative of the Indian Ministry of Information and Broadcasting and one of the officials responsible for regulating the film industry in the country, also expressed interest in the development of the Moscow Film Cluster.
One of the highlights of the India International Film Tourism Conclave was the awarding of The Greatest of All Time in the For Cinematic Excellence category. The movie was shot in Moscow. The jury members noted the project’s contribution to the development of tourism.
The shooting of The Greatest of All Time AGS by Entertainment was organized with the assistance of the Moscow Film Cluster and the Moscow Film Commission and took place in April 2024 on the streets of Moscow. The scenes were shot in such famous locations as Patriarch Bridge, Teatralnaya Square, Manezhnaya Square, Kazarmenny Lane, Podsosensky Lane, Nikolskaya Street and one of the festival venues of Moscow Seasons.
The Greatest of All Time became a landmark event in Indian box office history. It ranked fourth in box office earnings among all movies released in India in 2024 and is one of the most successful Tamil-language movies in history.
At the same time, the shooting of another joint Russian-Indian movie started at the Moskino Film City in Moscow. A film project dedicated to badminton became one of the first participants in the Moscow rebate program.
A project by Smena & WISH Media (Russia) and Kartina Entertainment And Sports Private Limited (India) will tell the story of a badminton player who travels to India with the Russian national team to compete in a tournament. Russian viewers will see for the first time the scale of sporting competitions in Asia, where badminton is a cult sport and draws packed stands of fans.
The agreement on the joint production of the Smash movie was signed st the Moscow International Film Week in August 2025. And as Moscow Mayor Sergei Sobyanin said, a rebate application was also submitted at that time to reimburse part of the costs incurred during the shooting process in the Russian capital.
